How to Comment on the Fed's Proposed Credit Card Rule Changes

Earlier today, the Federal Reserve proposed new rules to prohibit unfair practices regarding credit cards and overdraft services. that would, among other provisions, protect consumers from unexpected increases in the rate charged on pre-existing credit card balances.

In addition, the proposed rules addresses practices in connection with a bank’s payment of overdrafts on a deposit account, whether the overdraft is created by check, a withdrawal at an ATM, a debit card purchase, or other transactions. The proposed rules require institutions to provide consumers with notice and an opportunity to opt out of the payment of overdrafts, before any overdraft fees or charges may be imposed on consumers' accounts.

The Fed has been joined in putting forth these proposed changes by the Office of Thrift Supervision and the National Credit Union Administration.

The Fed has provided a seventy-five day comment period - to approximately mid-July. Providing your comments to the Fed is easy:

• On the Fed's web site (scroll down to the bottom of the page to Regulation AA - click on submit comment)
• By email to: regs.comments@federalreserve.gov
• By fax to (202) 452-3819 or (202) 452-3102
• By regular mail to:

  Jennifer J. Johnson
Secretary, Board of Governors of the Federal Reserve System
20th Street and Constitution Avenue, NW
Washington, DC 20551

Be sure to reference Docket No. R-1314 in your written comments.

All comments will be public and can be viewed online on the Fed's web site. Pro or con - this is an important payment card industry issue worth your comments.